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The WIEF-Seaco Foundation Dhaka Roundtable 2019 with the theme ‘Regional Collaboration: Transforming Economies’ will also look into the future direction of the halal industry as well as opportunities for infrastructure development, said a joint press release from both the organizations
South East Asian Co-operation (Seaco) Foundation and World Islamic Economic Forum (WIEF) Foundation will jointly organize a roundtable discussion in Dhaka on Tuesday, which will address the prospects and challenges of Islamic finance and sukuk.
The WIEF-Seaco Foundation Dhaka Roundtable 2019 with the theme “Regional Collaboration: Transforming Economies” will also look into the future direction of the halal industry as well as opportunities for infrastructure development, said a joint press release from both the organizations.
A sukuk is an Islamic financial certificate, similar to a bond in Western finance.
The final session at the roundtable will introduce Seaco, a regional partnership platform, which will link Bangladesh and the Maldives in the Bay of Bengal with selected Asean countries through various initiatives targeted to strengthen economic cooperation among these nations.
“Seaco trusts that the way to raise the socio economy of a community is through trade, investment, tourism and overall cooperation where national economies become more connected regionally, and financial institutions such as Islamic Development Bank (IDB) could play a catalytic role under their Special Development Program (SDP),” said Salahuddin Kasem Khan, executive chairman, Seaco Foundation and international advisory panel member of WIEF Foundation.
He said with the steady growth the country is experiencing, they wish that the private and public sectors from South-South East Asian economies will have further understanding of Islamic finance and banking as an alternative to conventional banking, as well as financing infrastructure investment such as sukuk in the power, transport and social infrastructure sectors.
“We are delighted to partner with WIEF Foundation in this Roundtable, by inviting subject matter experts to share their experiences with the business community in Bangladesh,” Salahuddin added.
Chairman of WIEF Foundation Tun Musa Hitam said the WIEF is pleased to take the first step in this initiative by working together with SEACO Foundation at this Roundtable. “I believe this will help us build closer trade integration, stronger institutions and financial links in the region.”
Tun Musa said they are hoping to see the private sectors to take the lead and participate in the economic development in these countries.
Islamic economy enjoys steady growth
The WIEF Foundation Chairman said the governments could provide support, for instance, through a blend of official development assistance (ODA), government-to-government (G2G) funding, alongside private financing in infrastructure projects.
“With 1.8 billion Muslims, the Islamic economy continues to enjoy steady growth. In the case of Islamic finance, it is a burgeoning sector with assets estimated at $2.4 trillion in 2017 and expected to surge to $3.8 trillion by 2023. The non-speculative nature of shariah compliant finance can help to ensure financial stability, a reason why it is gaining traction globally,” added Tun Misa Hitam.
The growing demand for shariah compliant finance, coupled with various initiatives undertaken by a number of governments and regulatory bodies across Asia have fueled the growth of the industry.
It is estimated that the value of shariah compliant assets in Asia will reach $3.8 trillion by 2023.
According to a report by Asian Development Bank (ADB), Asia Development Outlook (ADO) 2019, South Asia’s growth is projected to be 6.2% in 2019 and 6.7% in 2020.
The 2018-19 fiscal year of Bangladesh outperformed ADO 2019 projections, with Bangladesh accelerating to 8.1% on robust private consumption and exports, production exceeding expectations in all sectors, most notably, agriculture.
As growth in the economy will likely remain strong, forecasts for FY2020 are retained, according to a joint media release.
Developing Asia will require investment of $26 trillion from 2016 to 2030, or $1.7 trillion per year, if the region is to maintain its growth momentum, eradicate poverty, and respond to climate change (climate-adjusted estimate).
Without climate change mitigation and adaptation costs, $22.6 trillion will be needed, or $1.5 trillion per year (baseline estimate).
Of the total climate-adjusted investment needs over 2016–2030, $14.7 trillion will be for transport, power, telecommunications, and water supply and sanitation.
(DT)
